Sozo
August 18th, 2007, 11:42 AM
http://www.azstarnet.com/sn/printDS/196937
First Magnus Financial Corp. has laid off nearly all of its roughly 6,000 employees nationwide, according to a notice filed with the state today.
In the letter sent under the Workers Adjustment and Retraining Notification Act, First Magnus General Counsel Douglas Lemke wrote the following:
"Despite our extensive efforts to continue normal operations, First Magnus must permanently shut down substantially all of our operations nationally effectively (Thursday). As a result, substantially all of First Magnus’s nearly 6,000 employees will be laid of (Thursday)."
The notice said the company expects to retain just about one percent, or about 60 of its employees.
On Thursday, First Magnus representatives said the company would be keeping about 100 of its approximately 800 Tucson employees. The Tucson-based mortgage lender has also closed all of its offices nationwide, according to spokesman Gary Baraff. The company made loans in all 50 states and had more than 300 offices nationwide in 2006.
Former workers said they were awaiting paychecks when the company suddenly downsized on Thursday. Baraff said the checks are expected to be mailed on Monday, although it might take longer.
"We have not been advised if the checks will be mailed Aug. 20 or a later date," Baraff said, quoting an e-mail sent to employees by the human resources staff.
Arizona employers must pay terminated employees within three working days or by the next payday, whichever comes first, according to Tibor Nagy Jr. and Sam Coffman, attorneys specializing in employment law.
If paychecks of less than $2,500 go unpaid, employees can file complaints with the Industrial Commission of Arizona at 628-5181. For paychecks over $2,500, the only recourse is to file a lawsuit, said Nagy and Coffman.
First Magnus Financial Corp. has laid off nearly all of its roughly 6,000 employees nationwide, according to a notice filed with the state today.
In the letter sent under the Workers Adjustment and Retraining Notification Act, First Magnus General Counsel Douglas Lemke wrote the following:
"Despite our extensive efforts to continue normal operations, First Magnus must permanently shut down substantially all of our operations nationally effectively (Thursday). As a result, substantially all of First Magnus’s nearly 6,000 employees will be laid of (Thursday)."
The notice said the company expects to retain just about one percent, or about 60 of its employees.
On Thursday, First Magnus representatives said the company would be keeping about 100 of its approximately 800 Tucson employees. The Tucson-based mortgage lender has also closed all of its offices nationwide, according to spokesman Gary Baraff. The company made loans in all 50 states and had more than 300 offices nationwide in 2006.
Former workers said they were awaiting paychecks when the company suddenly downsized on Thursday. Baraff said the checks are expected to be mailed on Monday, although it might take longer.
"We have not been advised if the checks will be mailed Aug. 20 or a later date," Baraff said, quoting an e-mail sent to employees by the human resources staff.
Arizona employers must pay terminated employees within three working days or by the next payday, whichever comes first, according to Tibor Nagy Jr. and Sam Coffman, attorneys specializing in employment law.
If paychecks of less than $2,500 go unpaid, employees can file complaints with the Industrial Commission of Arizona at 628-5181. For paychecks over $2,500, the only recourse is to file a lawsuit, said Nagy and Coffman.